10 things you need to know before European markets open

North
Korean leader Kim Jong Un provides field guidance to the Jongsong
Pharmaceutical General Factory in this undated photo released by
North Korea's Korean Central News Agency (KCNA) in Pyongyang
October 2, 2015.Reuters

Good morning! Here's what you need to know.

German Chancellor Angela Merkel is leading a business
delegation to India.
She's expected to push for closer trade ties in
her first official trip to India since the
right-wing Bharatiya Janata Party stormed to power
last year.

Volkswagen's supervisory board will hold an
extraordinary meeting this week. Finance
chief Hans Dieter Poetsch is expected to be appointed as new head
of the 20-member controlling panel on Wednesday,
according to a Reuters report.

France is considering raising taxes on diesel over
the next five years. The policy shift is aimed at
ending an advantage over gasoline and encouraging drivers to
choose cleaner cars,
Environment Minister Segolene Royal said.

Extreme poverty will fall to less than 10 percent
of the global population for the first time. Despite the
good news,there is still "great concern"
for millions in Africa,
according to a World Bank report.

It's a big morning for European economic data.
TheMarkit services purchasing managing
index figures for Spain, Germany, Italy and France are all
published before 8 a.m. UK time (3 a.m. ET), while the EU's
year-on-year and month-on-month retail sales data is published at
9 a.am. UK time (4 a.m. ET).

Asian stocks are rising.Japan was up
0.7 percent. South Korea's Kospi rose 0.6 percent and Australian
shares gained 1.9 percent. Markets were buoyed by the
decreasing likelihood of a near-term interest rate hike by the
Federal Reserve after Friday's weaker-than-expected U.S.
employment data.

Diplomatic talks to create the world's
largest free trade zone, the Trans-Pacific Partnership, are
coming to a head. Officials could announce a deal
"in principle" after five days of negotiations, Japan's
Economy Minister Akira Amari said.The talks
between representatives of 12 countries comprising 40 percent of
the global economy -- including Canada, New Zealand, Mexico and
others -- have gone three days past the scheduled
ending.

About 630,000 people have entered the EU illegally so far
this year. The figure came from the head of the bloc's
border agency, Frontex executive director Fabrice
Leggeri,
in an interview with French media.

The U.S. Non-Manufacturing Index is
coming. The Institute for Supply Management
publishes data on business conditions at 2 p.m. UK time (9 a.m.
ET). Anything above 50 is considered bullish and the analyst
consensus sees a read of 58.

Clothing retailer American Apparel Inc has filed for
bankruptcy. The company said it had reached a
restructuring support agreement with 95 percent of its secured
lenders. "This restructuring will enable American Apparel to
become a stronger, more vibrant company,"
Chief Executive Paula Schneider said in a statement.